What is the settlement period?
It is the time it takes for stocks or money to reach their new destination after a financial transaction. During this process, the ownership of the securities is transferred from the seller to the buyer, and cash payment from the buyer to the seller is settled.
What is the T+1 rule?
The T+1 rule is the standard settlement cycle for securities transactions in most countries, including the United States. It implies that the transaction is settled one business day after the transaction date. During this period, you will see your money marked as "pending cash", and after one settlement day, it will be reflected in your "buying power", ready for reinvestment or withdrawal.
The T+1 rule is crucial for investors, as during this time, money and securities will be on hold.
What are unsettled funds?
Unsettled Funds are any funds in your account that are still being processed. These funds could be from a Deposit, a Sell Order, etc.
How does it work in the case of Hapi Prime?
Prime allows you to make instant sales so you can access the money from your sales immediately without waiting for the T+1 settlement period of the stock exchange.
However, you cannot withdraw the money from a sale in Hapi Prime immediately because it is still in the settlement process according to the T+1 rule. While you can use it to buy another asset on the same day, it will only be available for withdrawal once the settlement is complete.
📌 Example:
If you sell XYZ shares on Monday, you can use that money to buy another asset immediately, but you won’t be able to withdraw it until Tuesday.
Do you have any additional questions regarding Trade settlements? You can contact our support team here. We're here to help!